A payday loan (sometimes called a payday advance) is a short-term loan that you promise to pay back from your next paycheque, usually within 14 days. [...] You will need to sign a loan agreement that shows how much your loan will cost (including interest and fees), and the date that the loan is due. [...] When you apply for a payday loan, many lenders may require you to: • provide a post-dated cheque for the total loan amount including fees, or • sign a form that allows the lender to take the money directly from your bank account when the loan comes due. [...] If you are unable to pay your loan back on time, you may be charged additional fees: • A payday lender may charge you a penalty if your cheque or pre-authorized debit is returned to them (for example, due to non-sufficient funds). [...] THE LENDER OR COLLECTION AGENCY CAN THE LENDER CAN SELL YOUR LOAN TO SUE YOU FOR THE MONEY YOU OWE.